BAE in charm offensive to staff over merger plan
The management of the defence giant BAE Systems has so far met with 600 UK staff face-to-face to persuade them of the merits of its proposed £30bn merger with Airbus-owner EADS.
Ian King, chief executive, is holding a series of town hall meetings to reassure employees that the tie-up, which would create a European champion capable of taking on the US's Boeing, would create more work in the UK in the future.
Critics of the deal have argued that British staff could be most vulnerable in any future jobs culls because of the more stringent labour laws in France and Germany, where so many of Airbus's workers are based. However, BAE has struggled on its own, having been forced to cut 20,000 jobs, many of which were in Britain, over the past five years.
Yesterday afternoon Mr King held a call with more than 60 of BAE's top managers to run through how the merger will work. The board have been stressing how the merged group will have €18bn of cash on its balance sheet, allowing for expansion in lucrative markets such as Asia and the Middle East.
Under takeover rules, BAE and EADS have until 10 October, 28 working days after news of their talks leaked, to agree terms. However, they can request an extension, which might be necessary as German, British, French and Spanish governments look to safeguard their national interests.
The deal will see BAE shareholders own 40 per cent of the combined group, with the balance taken by EADS investors. The governments would be given golden shares so that they could veto any future hostile takeover, but EADS's chief executive,Tom Enders, is keen to rid the company of existing state influence, which includes the right to nominate board members.
Mr Enders is the favourite to lead the new group, which will be listed in London and Amsterdam.
Missing Malaysia Airlines Flight MH370: Wreckage could be found within a week as search reaches 'very critical juncture', says minister
Loch Ness Monster found on Apple Maps?
Royal Tour 2014: Is the Duchess of Cambridge the only person ever to climb into a fighter jet wearing a dress and high heels?
Kim Jong-un, crowds and contraband: Inside North Korea with the Pyongyang marathon winner
Cover up! Mother told to show less cleavage during Disneyland family trip: 'Are we supposed to wear turtlenecks our whole lives?'
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
'Sinful': Video of British Muslims dancing to Pharrell Williams's hit Happy comes under attack
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
Refugee facing deportation from Sweden saved by fellow passengers refusing to let plane leave
- 1 'Natural' energy drink banned for containing erectile dysfunction drug
- 2 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 3 Dylan Tombides: West Ham confirm 20-year-old striker has died after battle with cancer
- 4 Loch Ness Monster found on Apple Maps?
- 5 Angus Steakhouse: How does tourist staple continue to thrive in today's gourmet market?
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...